Lawmakers criticize EAA for taking DPS money, not training officers

Apr. 26, 2013

Written by

Chastity Pratt Dawsey

Detroit Free Press Education Writer

Democratic lawmakers attacked the state’s school reform district Friday for using Detroit Public Schools as a conduit for $12 million in loans and for inadequately training security officers.

Democratic state senators Coleman A. Young II of Detroit and Bert Johnson of Highland Park called the Education Achievement Authority of Michigan a threat to children at a news conference outside the state’s offices in Midtown.

“EAA should not exist, period,” Johnson said.

The lawmakers’ accusations come as the state Senate is considering a bill that would establish the EAA in law and allow it to include 35 more schools statewide. Young said he does not support the bill, but he intends to introduce an amendment that would require more training for EAA security officers who currently do not receive training in first aid or CPR.

The security concerns come on the heels of accusations against the EAA from Rep. Ellen Cogen Lipton, a Democrat from Huntington Woods, who said the EAA had stalled and charged her $2,642.05 for documents she requested under the Freedom of Information Act last month. Lipton released the information this week, including documents that show that Detroit Public Schools took out loans through the Michigan Finance Authority’s state aid note program and gave the money to the the EAA to pay its bills.

DPS — and the state — have an interest in the financial viability of the EAA. The EAA pays DPS for food services, information technology and police services. DPS also still owns the 15 school buildings that the EAA took over and about $10 million in lease payments will be due this summer. DPS is run by a state appointee, emergency manager Roy Roberts.

DPS took out a $6-million loan in September and passed the money on to the EAA to help with start up costs. The EAA repaid the loan in January and paid DPS an $87,000 markup on top of $30,000 in interest, said John Covington, chancellor for the EAA. In February, DPS took out another $6-million loan and passed the money on to the EAA. That is due to be paid off by July 22.

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The board was never presented with information on the transactions, EAA board president Carol Goss said Friday. The board was not required to approve the transactions, according to the Michigan Department of Treasury.

“It was not illegal. It was not a matter of going into smoke-filled back rooms to get it done; it was to make sure the children of the EAA would get everything they needed,” Covington said, “Once we become a statewide school district in the law, then we can do the same things other school districts are doing — that’s the crux of the problem.”

DPS acted as a conduit for the loans at the request of the state, according to DPS spokeswoman, Michelle Zdrodowski. Under the agreement with Eastern Michigan University that created the EAA, DPS can provide advances and services to the EAA, she said in a written statement.

Senate Democratic Leader Gretchen Whitmer, along with Sen. Vincent Gregory, a Democrat from Southfield, also issued statements condemning the governor and the EAA for using DPS to borrow money.

The EAA is the reform district for the lowest performing 5% of schools in the state that started educating students last fall by taking control of 15 schools in Detroit. It was formed in 2011 with support from Gov. Rick Snyder.

The EAA used DPS to get the loans because the EAA does not have authority to do so, said Caleb Buhs, a spokesman for the state treasury department. Legislation approved last month by the House and pending in the Senate would give the EAA the ability to take out loans backed by state aid payments, a common practice.

The EAA’s security issues gained attention last month after the EAA reported an increase in crime in its schools for the first half of the school year compared with last year. EAA contracts with Prudential Security for guards.

Gerald Collins, executive vice president for Prudential, said the firm provides training, but is not required to provide first aid and CPR training.